Imperial Brands Group (IMB) - Half-year Report

[idpickering]

REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2024

BUSINESS HIGHLIGHTS

• Strong tobacco pricing up 8.6% more than offsetting volume declines

• Delivering stable aggregate market share in our five priority markets in line with our strategic objective

• Next Generation Product net revenue up 16.8% by building scale in our market footprint and product innovation

• Adjusted earnings per share benefited from adjusted operating profit growth and share count reduction

• Cash conversion was strong on 12-month basis supported by improved working capital

• Delivering the £1.1bn share buyback this year, alongside an increased interim dividend up 4.0%

• Continued confidence in successful delivery of full-year results in line with guidance, with returns improving in line with five-year strategy

And later;

Free cash flow supporting investment and shareholder returns

· Adjusted operating cash conversion of c. 97% on a 12-month basis, reflecting working capital improvements

· Adjusted net debt £10.1bn; adjusted net debt to EBITDA on a 12-month basis broadly flat at 2.5x; reported net debt £10.6bn

· On track to deliver adjusted net debt to EBITDA of around 2.0 times at the year end

· Interim dividend per share up 4.0% to 44.90 pence, in line with our progressive dividend policy

· £604m buyback completed in period; on track to complete £1.1bn this year

· Since starting the buyback in October 2022, we have repurchased 9% of share capital

· On track to return at least £2.4bn to shareholders in FY24; and cumulative three-year returns of £6.0bn

https://www.investegate.co.uk/announcem ... rt/8197011

Also posted on Company News here; viewtopic.php?p=664363#p664363

I hold these in my HYP, and know others here do too, so this may be of interest here.

Ian.

[idpickering]

Further to the above;

Interim Dividend Declaration

The Board of Imperial Brands PLC (the "Company") has approved an interim dividend of 44.90 pence (HY23: 43.18 pence) per share which represents an increase of 4.0 % over the prior year and is in line with the Group's progressive dividend policy. The interim dividend will be paid in two instalments of 22.45 pence (HY23: 21.59 pence) per share with the first payment being paid on 28 June 2024 to shareholders registered on 24 May 2024. The second interim dividend payment will be paid on 30 September 2024 to shareholders registered on 23 August 2024.

The Group has paid two dividends in this financial year, the first being 51.82 pence per share in December 2023 and the second being 51.82 pence per share in March 2024.

https://www.investegate.co.uk/announcem ... on/8197689

Ian.

[vand]

The market certainly liked the latest update.

· Since starting the buyback in October 2022, we have repurchased 9% of share capital

shows just how effective buybacks can be when the company is cash generative and dirt cheap. Happy for them to keep this going - there's a huge difference between the richly valued megacap techs doing buybacks and baccies and other lowly rated value stocks doing the same.

[NeilW]

I'd prefer they handed the cash over to me and let me decide whether to purchase more shares or not.

We were far better served when capital reduction required a court order, rather than delegating it to fund managers trying to make their numbers look good and company managers who prefer to take the easy way out rather than justifying their salaries by coming up with ways to invest capital within the business.

[monabri]

I guess that the preparation is in place to put IMB in a strong a position as possible for any future mergers. Strange, a year or so ago, IMB were offering a red flag yield compared to BATS and were generally deemed the weaker company....that was my perception from comments on TLF iirc. New management...I wonder if Terry Smith might be considering rebuying?